The Damas plant in the Tuprakkala district will soon begin manufacturing an affordable car designed to meet strong market demand, backed by a $100mn investment, as announced by the President Shavkat Mirziyoyev.

The announcement came during a meeting dedicated to the socio-economic development priorities of the Khorezm region. The upcoming vehicle, which will meet the Euro-5 environmental standard and offer seven seats, is aimed at providing cost-effective transportation for families while aligning with international emissions regulations.

President Mirziyoyev directed officials to conclude talks with foreign partners within this year, start production using a large-scale assembly method by 2026, and reach full production cycle by 2027 with a localization rate of up to 50%.

The Damas automobile plant, which belongs to the Khorezm regional branch of UzAuto Motors, began operating in November 2022. It currently produces Damas and Labo models and was launched to stimulate job creation in the high-unemployment areas of Tuprakkala, Hazorasp, and Pitnak.

In addition to the automotive project, a Slovak investor has already invested $10mn in Tuprakkala to develop 500 hectares of sandy land. 

Plans are underway to expand development to an additional 4,500 hectares with a $170mn investment. The project includes cultivating rapeseed and producing bioethanol, supporting Uzbekistan’s shift toward renewable energy sources. The president instructed local authorities to ensure the investor receives all necessary support.